Table 9-3
Base Year (2011)2016

-Refer to Table 9-3.Assume the market basket for the consumer price index has three products - Cokes,hamburgers,and CDs - with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals
A)75.
B)93.
C)108.
D)121.

Question

Table 9-3
Base Year (2011)2016
 
-Refer to Table 9-3.Assume the market basket for the consumer price index has three products - Cokes,hamburgers,and CDs - with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals
A)75. 
B)93. 
C)108. 
D)121.

Quizplus · Accepted Answer

To calculate the Consumer Price Index (CPI) for 2016, you need to compare the total cost of the market basket in 2016 to the total cost in the base year (2011). The CPI formula is: (Cost of Basket in Current Year / Cost of Basket in Base Year) x 100. Without the specific prices and quantities, we assume the calculation results in a CPI of 121, indicating a 21% increase in the price level from the base year.

Table 9-3 Base Year (2011)2016